I think this is pretty cool, but it says nothing about what we can do, as disembodied brains to escape from this ancestor simulation. More to the point, it doesn't seem to tackle the idea of why would this simulation would be needed or wanted in a technologically superior race.

Notice how it skirts the issue of why people would be placed into false-realities. It's not exactly a profit machine. It also skips the issue of why the advanced civilization never developed ethics. But most of all, why can't this advanced civilization figure out how to provide utopian false-realities? I've had zero lap dances today, and I've been stuck in the office jockying phone calls and meeting with clients while paperwork stacks up. If this is a fantasy land, the scientist at the controls sucks at his job.

I don't think the why is relevant to the theory Fex. The idea is that if it can be done it will be done therefore it is statistically probable that we are in a sim, given there will be many more "sims" than "realities".